PFIE

Investment Analysis Clubs Saul’s Investing Discussions
1

Saul and friends,

Any ideas on what is up (or ‘down’ as the case may be) with PFIE? I have done a little bit of research and see no news. However, it does not seem that no news is good news. We discussed the recent offering/financing. I thought they would hold the line at $4, yet have seen them dip below that bar today. I believe their projections and estimates for 2014/2015 show 30%+/- increase in revenues and profits and as far as I know those are still valid. I bought more in the low/mid $4 range. I am thinking this may be opportunity for increasing the position. Any further thoughts, knowledge, or discussion?

KLVanLiew

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Hi KL, I have no idea either what is going on, but I added a little today. I suspect some people who bought at the offering, hoping for a quick rise, got bored or discouraged and sold. But that’s a total guess.

Saul

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Any ideas on what is up (or ‘down’ as the case may be) with PFIE? I have done a little bit of research and see no news. However, it does not seem that no news is good news. We discussed the recent offering/financing. I thought they would hold the line at $4, yet have seen them dip below that bar today. I believe their projections and estimates for 2014/2015 show 30%+/- increase in revenues and profits and as far as I know those are still valid. I bought more in the low/mid $4 range. I am thinking this may be opportunity for increasing the position. Any further thoughts, knowledge, or discussion?

Hi KL

I checked also, found their 2015 FY guidance to be (worse case) 47% Rev increase along with a nice increase in Net Income, so I am a buyer today. No other news except that;
In the 1st quarter of 2015 calendar, the new law goes into effect in the US requiring oilfield emission controls to be implemented.
They have penetrated only 1.2% of this market.

I think this is a time to be bold but keeping position size in mind since they are a micro cap stock and sometimes guppies get eaten.
Mykie

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They have penetrated only 1.2% of this market.

Typo there: it should have been 1% to 2% penetration.

Since I am here again, let me add a few more comments:
I think PFIE has two very big catalysts for continuing their growth:

  1. The previously mentioned USA emissions law enactment and,
  2. The natural gas movement to replace coal, (this is helping my KMI investment very nicely also, in fact Rich Kinder, CEO of KMI, is calling it a boom.)

Looks like a nice confluence of major forces and PFIE is in the middle of the stream.

IF anyone sees this differently, please speak up since I sure don’t want anyone to act upon my weak research.
Mykie
I’m doubling my small position today at sub $4.

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Mykie,

Those look like pretty accruate catalysts to me. May have to pick up some more on weakness at some point.

Jason
Long PFIE

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Thanks, Mykie.
I’m thinking like your thinking. Nice numbers and huge opportunity. I got some a little early, rather than at these new lows, and just wanted to make sure I was not missing something. Not sure I can or will add more yet, all things considered.
Yes guppies do get eaten, but when they do, it is by bigger fish which should mean an immediate bigger and meatier filet! Alas, I would rather this fish keep swimming and grow to maturity on its own until I decide it is time to reel it in!
KLVanLiew

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1. The previously mentioned USA emissions law enactment and,
2. The natural gas movement to replace coal, (this is helping my KMI investment very nicely also, in fact Rich Kinder, CEO of KMI, is calling it a boom.)

Looks like a nice confluence of major forces and PFIE is in the middle of the stream.

IF anyone sees this differently, please speak up since I sure don’t want anyone to act upon my weak research.

Mykie,

I see it the same way. I also increased my position…now 4.3% of my portfolio.